As part of the agreement, SigmaTel will deploy Parthus' MediaStream
platform, which incorporates DSP, associated peripherals and software on a
single chip, to deliver ultra-high quality 3D digital audio for the MP3,
WMA and AAC standards. SigmaTel will target its single chip audio
integrated circuit into the rapidly evolving portable audio (including MP3
players, cell phones, PDAs and digital cameras) and home entertainment
markets.

"High-quality audio is an essential component of tomorrow's mobile
device," said Ron Edgerton, CEO and president of SigmaTel. "By utilizing
Parthus' MediaStream DSP, we can provide our customers with a proven audio
technology and a retargetable, field-upgradeable solution that has been
designed specifically for the portable environment."

"SigmaTel is a proven leader in the deployment of audio chips to the PC
market as well as a variety of other applications markets," said Kevin
Fielding, president of Parthus. "Our agreement furthers underpins our
MediaStream multimedia franchise and Parthus' leadership position in MPEG
technologies as noted by the most recent Gartner Dataquest industry
survey."

About MediaStream

MediaStream is an IP Platform providing a complete media processing
solution for personal mobile devices. The platform is a fully synchronous,
synthesizable, scan testable, soft IP, DSP based solution. It offers a
complete IP solution for audio, video (graphics and still / moving image),
speech recognition and text to speech applications and with a key
advantage of reducing time-to-market and development cost for
semiconductor and OEM manufactures targeting the multimedia market.
Licensees of the MediaStream platform benefit from the culmination of over
20-person year's development already invested by Parthus. In addition, a
state-of-the-art tool and development board environment to significantly
reduction in customers design cycles.

About SigmaTel

SigmaTel, a provider of integrated circuit (IC) design, is converting
the real world into a digital experience with system-level, mixed-signal
solutions for the audio codec, audio decoder and wireless infrared
markets. Since its inception, SigmaTel has built a strong reputation as an
innovative developer of mixed-signal ICs, by being first to market with
several highly integrated designs. The privately held company is committed
to providing customers with high performance products along with superior
customer service and is based in Austin, Texas. For more information,
visit SigmaTel's Web site at http://www.sigmatel.com/

This document may contain "forward looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Any "forward looking statements" in this document are subject
to certain risks and uncertainties that could cause actual results to
differ materially from those stated. Any statements that are not
statements of historical fact (including, without limitation, statements
to the effect that the company or its management "believes," "expects,"
"anticipates," "plans" and similar expressions) should be considered
forward-looking statements. Important factors that could cause actual
results to differ from those indicated by such forward-looking statements
include uncertainties relating to the acceptance of semiconductor
intellectual property offerings, expansion of our business, quarterly
variations in results, and other uncertainties that are discussed in the
"Risk Factors" section of our prospectus dated November 8, 2000, which is
on file with the SEC and the Registrar of Companies in the Republic of
Ireland.